We have calculated the solubility by saying that if there is 2 × 10-5 mol/100 g of water then there must be ten times as much in 1000 g of water.
2 × 10-5 × 10 = 2 × 10-4 mol/1000 g of water
1000 g of water has a volume of 1000 cm3 or 1 dm3. However, this is not strictly the same as concentration in mol dm-3. We are saying that 1000 cm3 of water will dissolve 2 × 10-4 moles of calcium hydroxide, but a solubility of 2 × 10-4 mol dm-3 means that 1000 cm3 of solution contains 2 × 10-4 mol of calcium hydroxide. It's rather a subtle point, particularly where the solubility is so low as it is in this case. The tiny amount of calcium hydroxide dissolved in 1000 cm3 of water will have very little effect on the overall volume of the solution. So, in this case, it is a very good approximation.